Buying property V renting property
What is better, buying property or renting? Some point in your life you will ask yourself this question, the answer usually lies with your circumstance, and of course the state of property market.
When the property bubble burst in 2008 it completely turned the standard belief of owning a home is always better upside down. After all the property prices fell, many people were left with a mortgage debt that was larger than the value of their home, and thus rented accommodation became the in demand living style. Here is a list of Pros and Cons!
Benefits of renting
- Lower upfront cost. Usually 1-2 months’ rent upfront against having to pay a heavy deposit on your home, plus the solicitor’s fees.
- Invest in something else. Whether it be the stock market or a business opportunity you have the freedom to invest.
- Fancy a change of scenery? Within a month you can be gone and in a new place. With a mortgage you are there for at least 3 months and that’s if you already have a buyer in place. Not to mention the expense of solicitors fees.
- Uncertain of your income. If you are a businessman working for yourself, some years you may earn more than other years. Renting you can adjust your living accommodation according to how much money your making.
- Zero Maintenance. This does not always apply, but in most cases if anything goes wrong, it is at your landlords cost.
A few disadvantages, limited in re-decorating your property, price may increase subject to the landlord, and obviously you don’t get any equity in the property.
Benefits of buying
- Equity Building. When you buy a home with every payment you make you are increasing the amount of equity you hold in your home. You can also borrow against your home and use it as collateral.
- Freedom. It’s your home, if you want to build a skate ramp in your living room then go head!
- Pride of Ownership. Some people like the idea of owning their own home.